Strategy Should Pause Bitcoin Buys and Rebuild Cash, Cryptoquant Warns as STRC Stays Below Par

A Collapse successful Dividend Coverage

Strategy Inc. (Nasdaq: MSTR) should intermission its bitcoin accumulation and prioritize rebuilding currency reserves, according to Cryptoquant, the onchain information steadfast whose probe has tracked the company’s equilibrium expanse closely. The informing followed a crisp deterioration successful the metrics that enactment the firm’s preferred-stock dividends.

Image source: Cryptoquant

Cryptoquant Head of Research Julio Moreno said the company’s dividend sum has fallen from much than 7 years astatine the commencement of 2026 to conscionable 14 months. Over the aforesaid stretch, yearly dividend obligations person climbed from astir $300 cardinal to astir $1.2 cardinal arsenic the steadfast issued much STRC preferred banal to money bitcoin purchases. He further added:

“As Strategy continues issuing STRC preferred banal to money bitcoin purchases, its annualized dividend obligations person risen sharply portion its currency buffer has thinned.”

The deterioration was compounded by superior decisions with Moreno noting that Strategy precocious repurchased $1.5 cardinal of its 0% convertible elder notes owed successful 2029, a determination that reduced the currency disposable to enactment those increasing dividend payments.

STRC Stuck Below Par

The strain has been disposable successful the marketplace terms of the preferred shares themselves. Strategy’s STRC, a bitcoin-backed preferred stock, has struggled to instrumentality to its $100 par value, adjacent slipping below $90 astatine points, arsenic investors reassessed the instrument’s risk.

A bitcoin rebound has not fixed the problem, arsenic reporting from writer Laura Shin noted that STRC could not find its mode backmost to par adjacent arsenic the institution moved to a bi-monthly dividend rhythm and added $300 cardinal to bolster the structure, suggesting the discount is reflective of a deeper interest than short-term terms swings.

Image source: X

Bitcoin.com News had reported past week that Cryptoquant flagged the hazard that prolonged calm successful bitcoin’s terms could itself descend STRC, a script successful which the preferred banal weakens not connected a clang but connected a deficiency of upside momentum.

What Strategy Would Need

At the existent yearly dividend load of astir $1.2 billion, Moreno estimated Strategy would request astir $2.8 cardinal successful currency reserves to reconstruct 24 months of dividend coverage, adjacent to treble its contiguous level. However, the firm’s currency presumption has been moving successful the incorrect absorption arsenic reserves person fallen by 38% since the commencement of 2026, adjacent arsenic dividend obligations person multiplied, leaving a widening mismatch betwixt what Strategy owes and what it holds successful liquid funds.

For a institution that has built its individuality connected relentless bitcoin accumulation, the proposal to intermission buying cuts against its halfway playbook. In caller weeks, Michael Saylor has pushed backmost connected bearish narratives, arguing the steadfast may merchantability bitcoin if needed portion insisting its strategy keeps working.

That said, the contiguous question is whether Strategy adjusts people fixed a intermission successful purchases and a rebuild toward the astir $2.8 cardinal Cryptoquant cites would easiness dividend-coverage concerns, but it would besides people a notable displacement for a institution synonymous with buying bitcoin astatine each opportunity.

Until sum strengthens and the preferred banal recovers, the spread betwixt Strategy’s bitcoin ambitions and its currency obligations is apt to stay a cardinal question hanging implicit the firm.